The biggest increase occurred in the low-end segment. For instance, a studio apartment in a Vilnius residential area could be let for a little over €150 three years ago. Today, one would have to pay around €250 a month to rent the same apartment.
Experts say that the recent growth in Vilnius apartment rents is unsustainable, since people’s income did not grow at the same pace.
They add that the rise is partly due to recent developments in Vilnius labour market where foreign companies have set up a number of service centres, offering above-average salaries to their employees.
However, the supply of properties is also growing. Due to record-low interest rates, people choose to invest into apartments to let.